AfriPulse
September 25, (THEWILL) — The Nigerian stock market extended gains on Thursday, rising for a second straight session as investors responded positively to the Monetary Policy Committee’s (MPC) recent rate decision.
The All-Share Index (ASI) appreciated by 0.31 percent, moving from 140,716.10 basis points to 141,149.04, while market capitalisation also advanced by 0.31 percent, from N89.06 trillion to N89.34 trillion.
Thursday’s rebound followed a subdued performance on Wednesday, when the market slipped 0.15 percent, with both ASI and market capitalisation closing lower.
Market breadth improved significantly, with 34 gainers against 22 losers, compared with the previous day’s 23 gainers.
Top performers included MECURE (+9.89%), OANDO (+9.50%), MCINHOLS (+9.31%), CHAMS (+9.24%) and LEGENDINT (+9.18%). On the losers’ table, ETERNA led with a sharp -10.00 percent decline, followed by SOVRENINS (-4.84%), TIP (-3.84%), CAVERTON (-3.76%) and FIDSON (-3.72%).
Major counters such as Dangote Cement, Seplat Energy, Custodian Investment Plc, Julius Berger Nigeria Plc and Champion Breweries closed unchanged.
Analysts attributed the improved sentiment to the MPC’s 50-basis-point rate cut, which spurred buying interest in mid-sized and rate-sensitive stocks as investors repositioned their portfolios in anticipation of lower borrowing costs.
However, market activity remained selective, with rallies concentrated in a few names, while sharp declines in stocks like ETERNA reflected profit-taking and sector rotation despite the overall positive breadth.
Looking ahead, market direction will hinge on the pace of transmission of the rate cut to commercial lending, liquidity levels in the banking system, and company-specific developments.
For now, Thursday’s session indicates cautious optimism, with improved participation but concentrated gains suggesting investors remain watchful.
***Written by Ogochukwu Onwaeze.
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Source: TheWillNigeria | Read the Full Story…
